Higher interest rates boost Bank of America earnings

New York (AFP) –


Bank of America reported higher second-quarter earnings Tuesday, thanks to a boost in total loans and the benefit of increased interest rates.

Net income for the period ending June 30 was $4.9 billion, up 11 percent from the year-ago period.

Revenues were $22.8 billion, up 7.2 percent.

Much of the increase in profit was due to higher net interest income, as a result of Federal Reserve interest rate hikes.

"Against modest economic growth of two percent, we had one of the strongest quarters in our history," said Bank of America chief executive Brian Moynihan.

Average loans rose compared with the year-ago period, with gains in both consumer loans and global banking loans, a division that covers lending to corporations.

But as with rival banks like JPMorgan Chase and Citigroup, Bank of America's trading business suffered amid low volatility in key financial markets. Profit in global markets sank 25 percent to $830 million.

Bank of America's results translated into 46 cents per share, compared with 43 cents expected by analysts.

Shares dipped 0.7 percent to $23.85 in pre-market trading.